Why Irresponsible Tax Cut Doesn’t Work In Global Economy
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Submitted By:
Deepak Sarkar, 5/28/2004
It used to ‘Trickle Down’ when the money from tax cut stayed inside the country!
In this global economy, most rich would never invest their gift from tax cut in US or Canada because of unattractive interest rates and return on investment from usual stocks. Thus, most of the public money lost due to tax cut would be invested in the markets throughout the world, contributing to other country’s momentary economy to maximize profit..
Only the middle class would dare to buy goods or invest that money in US or Canada. While poor probably simply pay their existing debts or have a feast for a change.
Thus the usual conservative antidote of tax cut and interest rate cuts may be counter productive in the global free market economy. Rather, debt reduction, balanced budget and the promise of sustainable environmentally sound economy would attract domestic as well as foreign investors into US and Canadian banks and stock markets.
Good economy doesn’t necessarily mean a healthy nation. Largest economy doesn’t necessarily mean rich nation. It is time to re-think and re-evaluate economic benefit ensuring that it benefits the people whose well being determines the true richness of a nation.
@ May 30, 2004